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Biotech / Medical : CTEC: Cholestech any other investors?

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To: John Kratus who wrote (77)7/26/1997 6:24:00 PM
From: dstange   of 710
 
John,

While I hope the earnings numbers you posted come to fruition, I will point out that the Red Chip Review, which is currently quite enthusiastic about Cholestech, is estimating earnings of $.10 in FY98 and $.25 in FY99. I will note,however, that Red Chip seems to make conservative estimates on many stocks. Its low estimates will hopefully leave room for Cholestech to surprise on the upside to its estimates.

A question I have from the previous quarter is the extent to which Cholestech will continue the increase in R&D funding. I don't have a problem with increased funding because the sooner new test cassettes make it to the market, the sooner we will all be rewarded for that effort. The question is purely how much of an impact increased R&D has on current earnings. I have no good guesses so I will leave it open for discussion.

Dale
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